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Scenario: First National Bank
First National Bank has $80 million in checkable deposits, $15 million in deposits with the Federal Reserve, $5 million cash in the bank vault, and $5 million in government bonds.
-(Scenario: First National Bank) Look at the scenario First National Bank. If the minimum reserve ratio is 20%, how much is the bank required to keep in reserves?

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The bank is required to keep a minimum of 20% in reserves. This would be calculated by taking $80 million in checkable deposits multiplied by 20%, which equals $16 million.

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